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Witnesses dialed Triple Zero around 5 p.m. after spotting a Kia and a Volkswagen Golf reportedly driving “erratically” on Dimboola Road in Broadmeadows.
Authorities claim the Kia repeatedly rammed into the Volkswagen before both vehicles veered onto the opposite lane of Pascoe Vale Road.
The situation escalated when the Kia crashed into another car on the roadway.
A 20-year-old man exited one of the vehicles and was allegedly attacked with a machete, sustaining injuries to his upper body.
He was subsequently transported to the hospital with severe injuries.
Four people – a 15-year-old boy, a 17-year-old boy, a 23-year-old man and a 24-year-old man – were arrested at the scene a short time later.
They were all released pending further enquiries.
It is alleged a number of people fled the scene before police arrived.
An investigation into the incident remains ongoing.